Brushing aside an earlier Orange County court of appeal decision as “wrongly decided,” a Los Angeles appeals court ruled that federal law prevents states from revising arbitration contracts it deems unconscionable.
The unanimous opinion, written by Second District Court of Appeal Justice Reuben Ortega, upholds credit card issuer Discover Bank’s right to prohibit class action claims in its pre-dispute arbitration contracts. In Discover Bank v. Boehr, B161305, the court held that the 1925 Federal Arbitration Act requires that valid arbitration contracts be upheld.
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